Stocks continue to drift about as we wait for Cisco. Most sectors remain flat, but computers, software, and biotechnology are now down over 1 percent. The Networking Index epitomizes the day, up 0.14 percent.
Networking Index Daily Chart
The Networking Index (NWX.X) managed to break a five-month downtrend in July, but hasn't been doing much since then. Basically the index has been trying to build a base by sauntering between 365 and 300. Consolidating is better than dropping, but the 50-day moving average and a MACD that looks ready to roll over wants to push the index to lower boundary of the trading range. How much good news will Cisco have to spew to change that?
Brocade Communications Daily Chart
Brocade (BRCD) has been drifting lower since the May rally lost steam. BRCD is trying to reverse that trend by cracking the downtrend and 50-day moving average. If the MACD can also fight its way into positive territory, Brocade might be able to test the previous high at $45.
Ciena Daily Chart
Ciena (CIEN) has broken its downtrend, but still has a shorter term one to deal with. This stock has spent most of its energy just trying to hold on to support at $33.50. With the 50-day moving average and short term downtrend quickly approaching nobody could use a shot in the arm more than Ciena.